Reps seek to undo USPS benefit mandate

WASHINGTON — Rep. Tom Reed announced Monday that he recently introduced bipartisan legislation, the USPS Fairness Act, to end the unfair pre-funding mandate for the United States Postal Service (USPS) and solve the most pressing financial problem facing the Postal Service with Reps. Peter DeFazio (Ore.), Brian Fitzpatrick (Pa.), and Xochitl Torres Small (New Mexico).

USPS is the only federal agency required to pre-fund decades worth of health benefits for its future retirees. Since 2007, this unfair mandate is responsible for more than 90 percent of USPS’s financial losses and 100 percent of losses over the past six years.

“We care about the Postal Service’s financial well-being and will continue to use our position in Washington to ensure hardworking postal carriers around the country have health benefits in retirement,” Reed said. “However, this government mandate is unfair. We hope by resolving this issue the USPS will be able to focus on improving their service’s for people without the worry of this long term financial burden hurting their bottom line.”

“The USPS is a critical resource for Southwest Oregon, especially our rural communities,” said Rep. Peter DeFazio. “The pre-funding mandate has not only prevented USPS from investing in services, technology and products, but it has also threatened core services that Oregonians rely on, including door-to-door delivery and six-day delivery. This legislation will not only end USPS’s financial crisis but will allow the agency to invest in critical improvements, all while maintaining its commitments to retirees’ health benefits.”


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